How can remote server and data backup services help your financial institution? The fact is that there are many laws and regulations that require your company to possibly use data backup services and save data for at least five years. The penalties for not adhering to the data compliance laws and data regulations are stiff, including prison time. You don’t have to lose sleep over this, and by making just a few simple adjustments, your company and remain completely with proper data compliance, while still remaining productive, efficient and resting easy at night.
The Data Compliance Game in the Financial Industry
The Sarbanes-Oxley Act of 2002 was enacted to help win back investor trust in the United States’ security markets. Due to the huge scandals involving WorldCom, Peregrine Systems, Adelphia, Tyco International, and Enron, many investors lost billions of dollars. This caused a huge trust with the public. Data regulations and data auditing methods have been enacted to help remedy the situation. There are 11 major sections to this act:
1. Public Company Accounting Oversight Board - This board is a separate and individual board that was created to oversee data compliance and data auditing, as well as auditors and their specific tasks. It looks for compliance with the laws and inspects the conduct of the auditors each step of the way. The main goal of this board is to enforce data compliance and data regulations with the Sarbanes-Oxley Act of 2002.
2. Auditor Independence - This section helps to regulate the standards for external data auditing and the auditors. It deals with reporting requirements, audit partner rotation, and registers new auditors, thereby holding them to the data regulations set forth.
3. Corporate Responsibility - This section states that senior executives have an individual responsibility to make sure that financial reports of the corporation are complete and accurate. It also details the benefits and penalties involved for non-compliance. A company’s principal officers have to approve and certify the veracity of their company’s data auditing records and financial statements on a quarterly basis. The principal officers are usually the Chief Financial Officer or the Chief Executive Officer. This is why it is important to have precise data auditing measures in place with proper data backup services to avoid any possible penalties.
4. Analyst Conflicts Of Interest - This portion helps to outline the policies for conduct for the securities analysts. It also mandates disclosure of any known conflicts of interest between the investor and the securities analyst.
5. Enhanced Financial Disclosures - This section details the requirements to report various types of financial processes. This includes stock transactions of corporate officers, pro-forma figures, and off-balance sheet transactions. Internal structures to control data compliance and data regulations, as well as the accuracy of financial disclosures need to be in place.
6. Commission Resources & Authority - This portion outlines the Security Exchange Commission’s authority to bar or censure any professionals from practicing as a dealer, advisor or broker.
7. Reports & Studies - This requires the Security Exchange Commission and Comptroller General to report any and all findings, especially any reports that outline securities violations, actions taken to enforce data compliance, and what role credit rating had in the operating of the securities market. Once again, this is where adhering to the data regulations is extremely important.
8. Criminal Fraud Accountability - This portion outlines the penalties for alerting, destroying or manipulating financial records and not showing data compliance.
9. White Collar Crime Penalty Enhancement - This portion sets forth more stiff and stronger penalty recommendations for those who fail to certify their financial reports. Failing to certify financial reports could be considered a criminal offense.
10. Corporate Tax Returns - Chief Executive Officers have to sign the company’s tax returns.
11. Corporate Fraud Accountability - Tampering with records is considered a criminal offense, according to this section. This is probably one of the most important key points to seriously use correct data auditing measures and consider data backup services for your organization.
How Can Remote Server And Data Backup Services Help?
By getting the assistance of a data backup services company, you can rest assured that all your data is stored, compressed, and encrypted on a remote server. The Sarbanes -Oxley Act is strict in the data regulations, but you don’t have to lose efficiency in your company to comply. By using a data backup services company, you can perform top notch data auditing measures and rest easy. If there is any doubt about the corporate financial statement, you can access your files any time of the day, thereby keeping data compliant with the Sarbanes-Oxley Act. Use data backup services to increase your organization’s chances of data compliant success.